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Report: SEC Probing Other Madoff-Style Ponzi Schemes
Was Madoff just the tip of the iceberg?
The SEC is investigating at least one case in which investors may have been cheated out of as much as $1 billion, by money managers using tactics similar to those alleged to have been employed by Madoff, Bloomberg reports, based on anonymous sources "with knowledge of the inquiries."
It adds:
Regulators may discover additional Ponzi arrangements as declining stock markets prompt investors to withdraw their cash and they question how their money is being managed. This week, the SEC said it halted what the agency described as a $23 million scam targeting Haitian-Americans, and said the Florida- based operators had tried as recently as last month to bring in more investors.
And it throws in an additional nugget of news stemming from Madoff's providing a list of his assets to the SEC on Wednesday:
A catalog of Madoff's assets provided by his attorneys to the SEC on Dec. 31 hasn't revealed any major sources of additional cash, a person familiar with the matter said.
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Josh
Zachary
Well, duh.
January 2, 2009 5:21 PM | Reply | Permalink
Well if that $23 million scheme targeting Haitians is one of those Forex scams, I know some former coworkers who are going down.
But since this is the SEC we're talking about it probably isn't. There are so many of these scams out there... Madoff was the golden tip of that iceberg.
January 2, 2009 8:29 PM | Reply | Permalink
Why does the SEC hate laissez faire capitalism? If people are dumb enough to invest, let them get ripped off.
Laissez les bon (or mal) temps roulez!
January 3, 2009 11:32 PM | Reply | Permalink
It would appear that they love laissez-faire capitalism more than anything. Just sayin', ya know.
January 4, 2009 8:19 PM | Reply | Permalink
The ultimate ponzi scheme is being perpetrated by this Democratic Congress - spending trillions of future tax dollars to shore up current government spending.
The way to improve any economy, individual, corporate, or governmental, is to reduce spending while increasing income.
The Federal Government's program of increasing spending (Bailouts) and decreasing income (tax rebates) can only make the problem worse by requiring more borrowing (or even bigger tax hikes) in the future when the current debt payments come due.
Sounds simple, but true, and it seems to be beyond the intellectual capacities of economists and politicians.
The only alternatives are to either debase the currency and pay off the debts with dollars worth much less than today's dollars or to default on debt payments.
I would be happy to hear of any other alternatives.
.
January 5, 2009 7:51 AM | Reply | Permalink
The ultimate ponzi scheme is being perpetrated by Democratic Congress in the US government. They have bought into the bogus idea that debt creates wealth.
They are not only borrowing (from new investors) to pay off past debts (old investors), but are borrowing (from new investors) to spend additional funds (bailouts) while decreasing income (tax rebates).
At some time in the near future, they will have to borrow additional funds (from new investors) to pay off the current debts of past investors.
Any economy, individual, corporate, or government, can only be improved by increasing income and/or by decreasing spending.
This Democratic Congress is increasing spending (Bailouts) while decreasing income (economic stimulus packages). This is the exact opposite of what needs to be done to improve the US economy and can only make the US economy worse.
It is at the point where a person beging to think that the intention is to destroy the US economy.
January 5, 2009 8:04 AM | Reply | Permalink